Latest updates
Snapshot: notification injunctions
Ogier- Cayman Islands
- 15 April 2021
A notification injunction is an alternative to the conventional freezing order that is available where there is concern that a respondent may deal with their assets so as to frustrate the enforcement of any future judgment. This new breed of quia timet 'notification' injunction is to be welcomed: it represents a further weapon in the Cayman court's arsenal to assist litigants, particularly in fraud and asset tracing cases, to prevent the frustration of judgments.
Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Ogier- Jersey
- 15 April 2021
The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.
Director disqualification: 12-year disqualification penalty imposed
Ogier- Guernsey
- 15 April 2021
When considering the penalties imposed on directors of Guernsey companies for misconduct or breaches of the Companies (Guernsey) Law 2008, arguably the most serious penalty which can be imposed is a disqualification order. Such an order can, at its highest, be career ending for a director, with the maximum period of disqualification being 15 years. This article examines a recent decision in which the Royal Court imposed a disqualification period of 12 years.
Royal Court intervenes to set aside trustee decision
Ogier- Jersey
- 08 April 2021
In a recent case, the Royal Court intervened to set aside a decision of the trustee not to make the spouse of the settlor a beneficiary in her own right. The court's decision has implications for trustees and their obligation to act reasonably despite the trustee setting out reasons for its original decision.
Economic substance requirements: overview
Ogier- Cayman Islands
- 08 April 2021
The International Tax Cooperation (Economic Substance) Act reflected the Cayman Islands' commitment to its obligations as a member of the Organisation for Economic Cooperation and Development's global Base Erosion and Profit Shifting Inclusive Framework and corresponding EU requirements for no or nominal tax jurisdictions. This article summarises the key elements of the act and draws upon guidance issued by the Tax Information Authority.
Snapshot: 'momentous decision' applications by trustees
Ogier- Guernsey
- 08 April 2021
The terms of a trust deed will usually extend the powers conferred on trustees by the Trusts (Guernsey) Law 2007. When deciding to exercise these powers, trustees must consider all of their legal and fiduciary obligations. However, it is not always that simple; at some point a trustee will be faced with a decision so important or complex that it wishes to seek the blessing of the Royal Court. In Guernsey, such applications are known as 'momentous decision' or 'blessing' applications.
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International Law Office- International
- 07 April 2021
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CBDT delays relief for taxpayers facing double taxation
Cyril Amarchand Mangaldas- India
- 01 April 2021
The Central Board of Direct Taxes recently attempted to provide relief to individuals who are stranded in India due to the ongoing travel embargo and may be subject to double tax in India. The clarification sought by way of this circular was highly anticipated by individuals who have been stranded in India during financial year 2020-2021 and qualify as tax residents of India under the Income Tax Act. However, the circular offers no respite to individuals, unlike that issued in 2020.
Business asset disposal relief – a summary
Forsters LLP- United Kingdom
- 01 April 2021
Governments recognise that encouraging people to start businesses and employ others is important for the economy, and that any charge to tax on disposal should be mitigated to recognise the years of work involved in building a business and the financial risk that people take in doing so. This was the principle behind business asset disposal relief when it was introduced in 2008 to replace the earlier business asset taper relief.
Short-form mergers: Changyou.com judgment confirms appraisal rights
Ogier- Cayman Islands
- 01 April 2021
The Grand Court has confirmed that shareholders of companies that effect a short-form merger pursuant to Section 233(7) of Part XVI of the Companies Act (2021 Revision) are entitled to be paid the fair value of their shares on dissenting from the merger under Section 238 of the act. The eagerly awaited judgment in Changyou.com clarifies an issue which was previously the subject of extensive debate and provides welcome certainty to minority shareholders of Cayman companies.
Homeowners Protection Act – time to revisit
Lennox Paton- Bahamas
- 01 April 2021
The Homeowners Protection Act was designed to provide meaningful protection to homeowners by ensuring a true and proper discourse between borrowers and financial institutions and will likely become the epicentre of the mortgage market. However, the act has failed to achieve the balance that it sought to accomplish and is in dire need of reform.
Wills and probate law and COVID-19: current state of play
Ogier- Jersey
- 25 March 2021
Despite the various challenges arising from COVID-19 restrictions, individuals and businesses have shown resilience and an ability to swiftly adapt in order to make the most of the new reality – and Jersey has been no different. In particular, the States of Jersey were among the first in the world to introduce new wills and probate legislation as a direct result of the impact of the pandemic.
Video link as a means of access to justice
Courtenay Coye LLP- Belize
- 25 March 2021
Traditionally, in order for persons involved in litigation in the Supreme Court to participate in such proceedings – whether as a claimant, a defendant or even a witness – they had to be present in the court. At times, this strict requirement of personal presence served as a barrier to the ultimate goal of resolving disputes through litigation where persons involved therein were unable to attend the trial in person. Notably, the Civil Procedure Rules introduced the option to give evidence through a video link.
Real Property Tax Forgiveness Programme 2021: overview
Lennox Paton- Bahamas
- 25 March 2021
The prime minister recently announced a Real Property Tax Forgiveness Programme which will provide waivers to Bahamian and non-Bahamian property owners in The Bahamas who are in arrears. The programme is aimed at collecting outstanding property taxes in order to bring persons into compliance and increase government revenue. It will also assist in easing the financial burden on property owners which has been exacerbated due to the COVID-19 pandemic and the consequential economic downturn.
Estate experiences: administering an estate with Cayman assets
Ogier- Cayman Islands
- 25 March 2021
In every case of an individual dying leaving assets in the Cayman Islands, some form of grant must be obtained in order for the Cayman assets to be legally administered. The Cayman Islands as a jurisdiction has a robust framework for resolving estate disputes. The availability of professional trustee service providers to be appointed as personal representatives and who can draw on their substantial executor and trusts experience in complex estates is also a huge advantage.
What is a family? Supreme Court provides wide interpretation regarding married women and father's heirs
Cyril Amarchand Mangaldas- India
- 25 March 2021
The Supreme Court recently addressed two important points in relation to family settlements – primarily, whether a married woman's heirs from her father's side can be considered 'family' for the purpose of a family settlement. This judgment follows a line of recent judgments which are pro-women's rights in terms of inheriting and disposing of family property.
Commencing proceedings against a Cayman company in liquidation: having a case worth entertaining
Ogier- Cayman Islands
- 18 March 2021
The Grand Court recently considered the statutory moratorium against commencing proceedings against a Cayman company in liquidation. The court held that a plaintiff which launches originating proceedings against a company in liquidation, seeking adverse orders against that company, requires leave of the court to bring the proceedings. It also held that the plaintiffs in this case did not have "a case worth entertaining" in respect of either basis on which they had brought their applications.
Restriction of DAC6 regulations following Brexit – good news for 2021
Forsters LLP- United Kingdom
- 18 March 2021
The reporting requirements under the EU Directive on Administrative Cooperation in the Field of Taxation (DAC6) as it applies in the United Kingdom are now restricted to cross-border arrangements falling within one specific category of hallmark, Category D, rather than all of Categories A to E listed in DAC6. This is welcome news for lawyers, accountants and other professionals in the United Kingdom working on cross-border transactions and other arrangements, and for their clients.
Restructuring and insolvency guide
Ogier- Guernsey
- 18 March 2021
This article answers key questions regarding restructuring and insolvency in Guernsey. In particular, it covers domestic procedures, cross-border procedures, creditors, avoidance transactions and contributions to the liquidation estate and liability of officers.
Clarification on scope and meaning of Cayman firewall legislation and forum for administration clauses
Ogier- Cayman Islands
- 11 March 2021
A recent court judgment is the latest in a line of Cayman Islands court decisions which have considered the meaning and scope of the Cayman firewall provisions. The Grand Court has now provided important clarification about the effect of Section 90 of the Trusts Act 2020, confirming that it does not operate to bestow exclusive jurisdiction on the Cayman Islands courts (as previous cases have suggested) and that common law principles of forum non conveniens still have relevance and application.
